Skech 2019 First Quarter Net Sales Growth Is Expected To Break Through The Second Camp

In April 7th, Skech responsible person told reporters that the first quarter of 2019, the Cage management expects earnings per share will reach 70-75 cents, net sales are expected to be 1 billion 275 million -13 billion, a slight increase over the same period.

Zacks, a leading US investment company, expects Skech to continue to advance in 2019.

It is noteworthy that Cage's international business is still the main driving force for sales growth. Europe and China have become the most important markets outside the United States.

In 2018, Skech's sales increased by 11.5% to 4 billion 640 million US dollars over the same period, of which, in the fourth quarter of 2018, sales amounted to $1 billion 80 million, up 11.4% over the same period last year.

In the Chinese market, the retail sales of Cage reached 14 billion 100 million yuan, up 36% from the same period.

Skech relevant official said that Skech headquarters will continue to use the establishment of distribution networks, subsidiaries and joint ventures and other models to strengthen the global shoe market influence.

In fact, for the Chinese market, Cage made more efforts to achieve high growth goals through channel expansion.

In 2018, Skech announced strategic cooperation with Jin Lang sports, focusing on the development of the Midwest market. In June, Cage worked with BELLE group, Wangfujing group and pioneer group.

Prior to this, Cage also worked with AOKANG.

At the end of 2018, Skech opened a new "super store" new mode in China. The largest Asian superstore in Shenyang was located in the star Moore mall in Shenyang with an area of 2982 square meters. In the fourth quarter, Skech broke through the construction of the new logistics center in the Chinese market.

Skech, chief executive of China, South Korea and Southeast Asia, Chen Weili said that Cage regarded China as a new growth point, and will further layout the central and western regions in the future, while reversing the brand image and changing to a younger trend.

At present, Skech has set up independent stores, department stores and brand counters around the world, with over 2800 retail outlets and brand official websites.

In addition to the US, Skech also sells products in more than 170 countries and regions through joint ventures in Canada, Japan, Europe and Latin America, Asia and the Middle East, and distributors around the world.

It is worth mentioning that for Skech, performance continues to climb at the same time, in the Chinese market is still facing challenges.

Among them, in addition to the channel problem, the product is single and caught in plagiarism, making Skech's position in the second camp of foreign sports brands awkward.

In 2016, Nike filed a lawsuit against Cage, saying that Cage had a design element that infringed Nike's intellectual property rights.

In addition, brands such as Adidas, CONVERSE and Crocs have sued Cage for suspected infringement or design plagiarism.

At the same time, regardless of the global market or the Chinese market, the first camp of Nike and Adidas sports brands has been stable, and the gap between professional sports brands such as Cage and Arthur is also gradually emerging.

Brand competition, like Cage's two camp, is becoming increasingly fierce.

Although Skech has said that Skech is positioned in Nike, Adidas, Anta, Lining above the brand, but before Nike announced that more products will enter more than 100 U.S. dollars below the low price range, coupled with the recovery of brands such as Lining and Kappa, leaving little room for Cage.

According to the insiders, Cage's products are ambiguous in the sports brand, and the age of the consumers is more serious. Although Cage can help develop the Chinese market through cooperation with the distributors, if there is no core characteristic product, it will be difficult for the Chinese market to go further.